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JACKSONVILLE, Fla. - Winn-Dixie Stores kicked off the 2011 fiscal year with heavy losses and sales declines, but officials were confident better days are ahead.
Citing everything from the performance of rival Publix, to election results, to an anticipated rebound from "snowbirds" visiting its home state this winter, Peter Lynch, Winn-Dixie's chief executive officer, maintained trends favored improvements in earnings and sales for the remainder of the fiscal year.
In the fiscal first quarter, which ended Sept. 22, Winn-Dixie Stores reported a loss of $76.8 million, citing expenses incurred in a recent round of store closures and layoffs as well as a 2.3% sales decline compared with the same period last year.
Identical-store sales declined by 2.8% vs. year ago, but improved strongly from the fourth quarter, during which ID sales tumbled by more than 5%, Lynch said. A continuation of this sales trend, combined with ongoing cost-reduction efforts and an easing of promotional spending, should improve earnings for the remainder of the fiscal year, he added.
"In the near term, we believe it's critical to focus on the top line, and the actions we took this quarter were necessary to position us to achieve sustainable and profitable sales growth," Lynch said in a conference call discussing...